Global real estate investment firm Kennedy-Wilson Holdings Inc. (KW) has signed a joint venture agreement with a global institutional investor to buy and manage core-plus multifamily communities in the Western U.S.
Beverly Hills-based Kennedy-Wilson owns, operates, and invests in real estate via its investment platform. (See Kennedy-Wilson stock chart on TipRanks)
The multifamily platform’s initial portfolio consists of nine multifamily properties worth $800 million. These properties were previously wholly owned by Kennedy-Wilson.
As per the terms of the deal, Kennedy-Wilson owns a 51% stake in the JV, while the institutional investor holds the remaining 49%. The JV plans to target additional core-plus acquisition opportunities of around $700 million.
The 49% stake sale in the multifamily assets and the creation of the new platform generated proceeds of around $254 million for Kennedy-Wilson.
Chairman and CEO of Kennedy-Wilson, William McMorrow, said, “We have a long track record of identifying multifamily investment opportunities across the Western U.S. and we are grateful to have a strategic partner that will enable us to expedite the growth of our multifamily business.”
Evercore ISI analyst Sheila McGrath recently maintained a Buy rating on the stock with a price target of $23 (16% upside potential). The analyst expects the company to post a loss per share of $0.04 in the second quarter.
Overall, the stock has a Moderate Buy consensus rating based on 2 Buys. The average Kennedy-Wilson price target is $23. The company’s shares have gained 34.1% over the past year.
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